Transactions involving derivatives and structured finance can be complex and often require the specialized knowledge of experts deeply familiar with the products and markets in which the products trade. Compass Lexecon economists offer that in-depth familiarity, knowledge and experience. Our expertise involving derivatives, structured finance and related financial instruments encompasses litigation, consulting and regulatory compliance.

With a combination of academic and industry expertise, we have been involved in cases pertaining to the operation and structure of the markets in which derivatives and structured products are traded, the valuation of financial instruments, disputes over the rights of different classes of securities holders and derivatives counterparties, disputes concerning credit assessments, cash flow waterfall modeling, and analyzing complex structured financial instruments.

Our expertise involving derivatives and structured finance also includes assessments and analyses of how different market participants use derivatives and structured financing techniques. Clients have engaged Compass Lexecon in litigation and regulatory investigations involving internal controls and risk management processes related to the use of derivatives and structured finance. In addition, we have performed analyses of firms’ derivatives and structured finance activities involving hedging effectiveness, economic substance, tax, accounting, disclosure and regulatory compliance.

Our vast warehouse of experience with – and knowledge of – products and markets, along with our economic and accounting expertise, enables us to uniquely address problems in this area. We have deep familiarity with derivatives and structured products based on credit and interest-rate markets, foreign exchange, commodities, equities and insurance-linked derivatives and securities. We bring our interdisciplinary skills to bear on disputes concerning any of these products.

Compass Lexecon has experience with a number of derivatives product types and structured financing vehicles, including: